A report by Bloomberg stated that Temasek Holdings and Raine Group are set to make an investment in the music streaming service

Singapore state investment firm Temasek Holdings and New York-based boutique bank Raine Group are finalising a deal to buy stakes in music streaming service SoundCloud, reported Bloomberg.

If the deal goes through, the increased runway will allow owners of the ailing startup to take a breather, at least for a while. No other details of the potential investment were disclosed.

Founded in Stockholm in 2007, SoundCloud was once a bright beacon in the tech world. Today, the homeground of many indie and famous artists is a shadow of its former itself.

The company was offered a US$1 billion buyout last year; but this year, it has been haemorrhaging money, laying off staff, and was said to be seeking any deal that is above US$250 million.

Even the launch of its premium music streaming service SoundCloud Go did little to stem the bleeding; competition from rival services, especially Spotify and Apple Music, have left it in the dust. Reports have suggested SoundCloud might run out of cash by the end of this year.

Also Read: Temasek Holdings revealed as high-profile investor in Snapchat parent company

SoundCloud currently has 175 million users. It previously raised about US$193.2 million in investment.

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Image Credit: SoundCloud

 

 

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